Government cautious about the impact of weak rupee
The Finance Minister acknowledged that a fall in the value of the rupee would have an immediate impact on imports and would make imports more expensive. However, he said that the rupee has performed better than many other currencies.
Finance Minister Nirmala Sitharaman said on Friday that the government would pay Rs.Rupee) is cautious about the impact of falling price and is monitoring the situation. U.S. Dollar (DollarIn the context of the continuous fall in the value of the rupee in the last few months, Sitharaman said that the rupee has performed relatively better in comparison to other currencies.Finance Minister , Finance Minister) Sitharaman said at an event here, “The Reserve Bank is keeping a very close watch on the exchange rate of the rupee. We are not alone in this world. We are part of an open economy. However, the rupee has outperformed the dollar against other currencies. At present, there is a record fall in the rupee against the dollar. Rupee has crossed the level of 79 against the dollar. Due to which imports are becoming more expensive.
The impact of rupee depreciation will be visible
At the same time, the Finance Minister accepted that due to the fall in the value of rupee, there will be an immediate impact on imports and imports will become more expensive. He said that I am very cautious and aware about this because a large part of our industry depends on the import of some essential items for production. The rupee had slipped below Rs 79 against the US dollar on Wednesday, which is its lowest level ever. Since the start of the Russo-Ukraine war, the rupee has been depreciating continuously in the last few months. The Reserve Bank’s Financial Stability Report released on Thursday also said that the rupee has shown a far better performance against the dollar as compared to other currencies. By the way, the foreign exchange reserves have decreased by $ 40.94 billion in the last four months due to the support of the rupee.
where did the rupee reach today
The rupee has closed below the level of 79 against the dollar in Wednesday’s trade. During this week, the rupee has seen a fall of 70 paise or 0.9 percent. The weakness in the rupee against the dollar has been seen due to the rise in crude oil prices and the strengthening of the dollar by the Federal Reserve’s strict policies. Due to the rise in crude oil and the weakness in the rupee, there is a possibility of increasing the current account deficit. On the other hand, due to further tightening of rates by the Federal Reserve, there is a possibility of further weakness in the rupee.